Once again the price movement on the EUR/USD pair chart seems to continue to produce a ‘rebounce’ on this year’s latest support zone around 1.13000 to re -show the surge.
That is, the spike has also returned to test the resistance level of the Moving Average 50 (MA50) in the 1 hour time frame before moving slowly and horizontally at the end of the trading session.
The price movement also seems to be forming a bearish pattern as the price remains trading below the MA50 level which could possibly push a new low to be created.
The full focus will be more on the outcome of the FOMC meeting to be held this week to determine whether the USD is able to strengthen or vice versa.
This is an important event following the Federal Reserve (Fed) which previously put forward the prospect of raising interest rates as well as ending bond purchases sooner than expected.
Furthermore, the crisis between Russia and Ukraine is expected to be able to invite market concerns which will support the strengthening of the USD as a safe-haven currency.
In conclusion investors are likely to place a tendency that the price may continue to decline to track the support zone that often supports the price spike at 1.13000.
A lower decline over the support zone indirectly is likely to push the price to test the support zone of 1.12000 and will make the lowest level in 5 weeks.
On the other hand, if the price again denies the decline, then the high level at 1.13500 will probably be the level reached earlier if the price rises again.
An increase towards the bullish trend indicator will be displayed if the price movement manages to reach the resistance zone of 1.14000 before heading to the high of 2022 at 1.15000.
